Job title, core duties, and who the employee reports to. Specific enough to define the role without being so prescriptive that ordinary evolution of the position creates a contractual issue. Vague role definitions are the most common source of scope disputes in employment relationships.

Base salary or hourly rate, pay frequency, bonus structure and conditions, equity if applicable, and benefits by reference to the employee handbook. Compensation terms must comply with the applicable state’s minimum wage, overtime threshold, and pay frequency requirements — which vary significantly across all 50 US states.

Whether the position is at-will or for cause, with the applicable state’s at-will doctrine stated explicitly. Montana is the only US state without at-will employment. Most states recognize public policy exceptions to at-will termination. The classification statement must reflect the applicable state’s specific doctrine rather than a generic national standard.

Under 17 USC 101, employees own the work they create by default without a written assignment. The IP assignment clause transfers ownership of all work product created during employment to the employer. The prior invention carve-out, required in California and advisable in all states, excludes work the employee developed before the employment relationship began using their own resources. Without this carve-out, the employer may inadvertently claim ownership of pre-existing work.

The confidentiality provision protects trade secrets and proprietary information. The scope must be defined specifically enough to give the employee fair notice of what is covered. An overbroad definition may be unenforceable in states with strict NDA standards. The provision should reference both common law trade secret protection and the applicable state’s trade secret statute — most states have adopted the Uniform Trade Secrets Act or the Defend Trade Secrets Act overlay.

The most state-variable provision in any employment contract. California broadly prohibits non-competes under BPC 16600. Florida actively enforces them under Statute 542.335. Texas enforces them with specific requirements under the Texas Covenants Not to Compete Act. New York enforces them with a reasonableness standard. Legal Chain generates non-compete language calibrated to the applicable state’s specific standards — including generating no non-compete language for California, where inclusion of such provisions creates independent legal exposure.

Notice requirements for termination without cause, final paycheck timing requirements (which vary significantly by state — California requires final pay on the last day of employment), and severance terms if applicable. The termination procedure must comply with the applicable state’s specific requirements to avoid wage claim exposure.

The applicable state’s law and the agreed mechanism for resolving disputes — arbitration, mediation, or court with specified venue. Mandatory arbitration clauses in employment agreements are subject to specific requirements in California (Code of Civil Procedure Section 1281.96) and several other states. The governing law clause determines which state’s employment standards apply to every provision in the agreement.